Take-Away: With the Estates and Protected Individuals Code (EPIC) came a new interpretation of the legal term ‘by representation.’ That new interpretation is automatically applied anytime a Will or Trust is amended after April 1, 2000, perhaps unbeknownst to the testator or settlor. Note: A few years back this topic was covered in a missive, However, […]

Take-Away: In general, no contribution can be made to the decedent’s IRA account after his or her death. But,of course, when dealing with the IRS, there are a few exceptions. Background: Most transactions are not permitted with a decedent’s IRA after his or her death. However, some activities with regard to the decedent’s  IRA which are […]

Take-Away: Twenty states, but not Michigan, have adopted this uniform act which is designed to protect heirs who inherit real estate as tenants-in-common, against forced partition by real property speculators. Background: A perceived problem for many heirs is when several of them inherit a piece of family (heirloom) real property, as tenants-in-common. Each heir may […]

Take-Away: The IRS has granted relief from penalties for those designated beneficiaries who failed to take a required minimum distribution from an inherited IRA under the SECURE Act Proposed Regulations. The bad news is that the IRS is sticking with its interpretation of the SECURE Act requiring annual required minimum distributions taken by the designated […]

Take-Away: Perpetual trusts appear to be alive and well, which cannot be said for the Rule Against Perpetuities. Background: A quick look around the country and one can quickly conclude that the ancient Rule Against Perpetuties (RAP)is rapidly losing its effect as a legal doctrine. States are now eager to jump on the bandwagon to […]

Take-Away: The IRS just extended the deadline when qualified plans must be amended to reflect changes required by the SECURE Act and the CARES Act. Background: On August 3, 2022 the IRS released Notice 2022-33. That Notice provides an extension for qualified plans to adopt amendments under the SECURE Act. The Notice also addresses the […]

Take-Away: Sometimes we make the erroneous assumption that the named co-owner of a joint bank account is entitled to the account balance on the other co-owner’s death. That statutory presumption can, at times, be rebutted with evidence that no survivorship principles were intended when the joint account is opened. Background: Michigan has several different statutes […]

Take-Away: Cryptocurrency can be held in an IRA. But should they be a viable IRA investment? Background: A few months back, the Department of Labor expressed some concern in one of its publications with regard to holding cryptocurrency in a qualified retirement account. More recently, Fidelity Investments made the news by announcing that it would […]

Take-Away: The SECURE Act Proposed Regulations are effective beginning in 2022. Whether we like these new rules or not, they must be followed, even when the Regulations are not yet final. The Proposed Regulations provide for complex, aka confusing, distribution rules, and also some needed flexibility when it comes to ‘fixing’ see-through trusts. Background: As […]

Take-Away:  Accessing a retirement account funds without a penalty, other than an IRA, is possible at age 55 years, but only if there has been a separation from service. However, this rule is often misunderstood. Background: One of the exceptions to the 10% penalty for early withdrawals from a retirement plan account is the rule […]